Coinbase announced that it has acquired Xapo. With the acquisition, Coinbase Custody is now the largest crypto storage service in the world, managing more than $ 7 billion in assets.

Xapo, a Hong Kong-based company that provides Bitcoin cold wallet storage services, is now officially part of Coinbase Custody. With the acquisition of Xapo, Coinbase Custody is now the biggest crypto custodian in the industry. Xapo currently has close to $10 billion worth of Bitcoin stored in underground vaults.

Coinbase announced this acquisition of Xapo on August 15, 2019. The cryptocurrency exchange has completed the acquisition of Xapo’s custody business in a deal reportedly worth $55 million. The acquisition will help prop up Coinbase Custody, which has over $7 billion worth of assets stored for more than 120 clients.

Fortune reported that the exchange had some stern competition from crypto asset management firm Fidelity in its bid for Xapo’s institutional businesses, but ultimately it was able to edge out the competition.

The Fortune report also included a quote from Coinbase Chief Executive Sam McIngvale, who revealed the company’s intention to expand into the cryptocurrency lending business. He added that it would be looking to help investors earn a profit on bitcoin lending and that the Xapo deal could be significant in bringing that mission to life.